Wi-Fi Everywhere: Ops Hot on Hotspots

5/28/2012 12:01 AM Eastern

By: By Todd Spangler , Mike Reynolds and John Eggerton

BOSTON —Cable doesn’t have a truechallenger to ubiquitous 4G wirelessbroadband. But the industry is launchinga wireless offensive using relativelycheap Wi-Fi technology to blankethigh-traffic areas in major U.S. markets— an enhancement designed to keepwired broadband subscribers from cuttingthe cable cord.

The five largest MSOs last weekunveiled plans to team up to giveeach other’s high-speed data customersreciprocal access to metro Wi-Finetworks, totalingmore than 50,000hotspots. Separately,Comcast is enhancingits Xfinity Voiceservice to allow freecalls over Wi-Fi andother wireless datanetworks using mobiledevices or PCs.

Under the banner“CableWiFi,” Comcast,Time WarnerCable, CablevisionSystems, Cox CommunicationsandBright House Networkscustomerswill be able to accessWi-Fi hotspotsoutside their homemarket. Currently,Cablevision, whichbegan building outits Optimum Wi-Fiservice in 2008,provides the majorityof the access points, with 35,000-plusrolled out to date.

“While the announcement is not asurprise … the strategic implicationsare profound,” Sanford Bernstein senioranalyst Craig Moffett wrote in a researchnote. “The unique usage characteristicsof wireless networks leave thedoor open for a potentially very disruptiveWi-Fi-first service.”

Cablevision and Bright House respectivelyhave launched “CableWiFi” alongsidetheir branded Wi-Fi networks inmetro New York and in central Florida,respectively. Comcast operates hotspotsin Philadelphia and parts of NewJersey, while TWC has Wi-Fi areas ofNew York City and Los Angeles.

The Wi-Fi sharing initiative is themost inclusive to date among MSOs.In early 2010, Cablevision, Comcastand Time Warner Cable entered into anagreement allowing their customersinNew York City, Long Island, New Jersey,Philadelphia and Connecticut to accessWi-Fi hotspots offered by each operatorin these areas.

When outside their home markets,high-speed Internet subscribers of theparticipating MSOs can look for theCableWiFi network and, through a signonprocess, connect with the same credentialsthey use to access their localproviders’ Wi-Fi services. In the monthsahead, users will be able to have theirdevices auto-connect to the Internet viaany CableWiFi hotspot.

The MSOs also are eyeing incrementalrevenue from non-subscribers whocan pay for temporary Wi-Fi access.

At the 2012 Cable Show, FederalCommunications Commission chairmanJulius Genachowski praised the cableeffort onstage in a session with NCTApresident and CEO Michael Powell.“Cable has been leading the way in innovatingaround Wi-Fi,” the chairmansaid.

Also last week, Comcast said itwould let Xfinity Voice customers placefree calls over Wi-Fi and other wirelessdata networks using mobile devices orPCs. In addition, as part of theVoice2go service, customers will beable toforward phone calls to up to four additionalphones or devices, and Comcastwill supply up to four individual phonenumbers to family members for no additionalcharge.

“We’rebringing customers featuresthey would have thought could only beprovided by a wireless carrier,” CathyAvgiris, executive vice president andgeneral manager of data and communicationsservices for Comcast,told reporters. “Really, what we wantis to answer the question of why acustomer should want phone serviceat home.”

Comcast said the features will becoming “soon” to new Xfinity Voicecustomers, and also will be made availableto existing customers on a rollingmarket-by-market basis